Walt Disney Pest Analysis

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1. Introduction

Walt Disney Pictures, Inc. is an American film production and it is easy recognized as one of Hollywood’s “Big Six” film studios. The modern-day Walt Disney Pictures was originally founded as the Disney Brother’s Cartoon Studio, by filmmaker Walt Disney in 1923. This report below will show the environmental analysis on Walt Disney Pictures.

2. Company Background

Walt Disney Pictures Inc. is owned by The Walt Disney Company, which is commonly known as Disney. In the first period, Walt Disney Pictures only focus to made cartoon films and heading to children as the main purpose of the company. Despite Walt Disney Pictures had success with many famous cartoon movie such as Snow White and the
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In the film industry, the issue of production cost as well as copyright law has a significant influence on the new entrants. Therefore, Walt Disney Pictures already have an advantage compared to other new film producers. Overall, it is clear that the threat of new entrants of Walt Disney Pictures is low.

Bargaining Power of Supplier

Due to the characteristics of the film industry, the suppliers are led by a few companies and because the Walt Disney Pictures is an important client of many suppliers, they do not have many choices to refuse the requirements of this company. In addition, the company is a large company and it may give them a great advantage compared to competitors. By being able to order large volumes of unique products from unique suppliers, the Walt Disney will create a dependency relationship in the industry.

Bargaining Power of
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The Walt Disney Pictures needs amount of customer to run the operation evenly because of the customer have a big impact on the system. For example, if the cost of a particular film ticket is too high, consumers might be hesitant to spending for the price that needed to purchase the products.

Threat of Substitutes Products

The threat of substitute products of Walt Disney Pictures is moderate to low. As a big company, the Walt Disney Pictures can deal with the other new products by settling price controls on many product lines. However, the threat of substitutes can be more dangerous by upgrading services and products, but in the short future, with the position the company standing, the Walt Disney Pictures do not need to be too worried about this threat.

Competitive Rivalry within an Industry

As one of six leading companies in Hollywood about film production, which is one of the most markets, can have a lot of customers, it is clear that the Walt Disney Pictures have many competitive rivalry within an industry. A multinational company such as the Walt Disney Pictures faces internal weaknesses and strengths and they need to cope with those problems. For example, those small companies will be differences in pricing about marketing strategies or the way they produce a movie. They can against the Walt Disney Pictures via reducing the cost of advertising or remove unnecessary charge and it
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